Small Business Issues Center Stage Ahead of 2026 Session

On the eve of the 2026 General Assembly session, Gov. Ned Lamont said he’s focused on policies that will provide relief for Connecticut’s small businesses.

“We’re trying to do everything we can to: A, get out of your way when we can; and B, be helpful where we can,” Lamont told a crowd of 450 business leaders and public officials at CBIA’s 2026 Economic Summit + Outlook.

That help, Lamont said, could include conversations about expanding R&D tax credits for small businesses and pass‑through entities.

“It makes a difference what you’re able to do,” he said. “Manufacturing, the trades, rebuilding—those are all things that give us a lot of momentum.”

Supporting small businesses and growing the workforce emerged as central themes throughout the Jan. 29 summit at the Connecticut Convention Center in Hartford.

Supporting Small Businesses

“Small businesses are the heart and backbone of Connecticut’s economy,” CBIA president and CEO Chris DiPentima said in his opening remarks.

DiPentima highlighted CBIA’s 2026 legislative policy solutions—a 10‑point package designed to strengthen small business competitiveness by improving affordability, efficiency, and workforce readiness.

“We are calling on lawmakers to not only recognize the importance of smaller employers to Connecticut’s economy, but to become small business champions,” DiPentima said.

The 2026 legislative session begins with Connecticut’s economy facing a mix of challenges and opportunities.

“Too many talented people find it difficult to envision a future here.”

CBIA’s Chris DiPentima

The state’s GDP growth ranked fourth highest in the nation in the third quarter, driven by strong performances in finance and insurance, manufacturing, and information sectors.

Despite those gains, persistent labor force challenges continue to constrain growth.

Connecticut’s labor force declined by 19,900 people in 2025, the sixth worst of any state in percentage terms (-1%), with national growth at 1.7%.

“Too many employers—large and small—are struggling to find workers with the skills they need,” DiPentima said.

“And too many talented people—especially younger workers—find it difficult to envision a future here.”

‘Act With Urgency’

Rising costs of living and doing business—including energy, housing, healthcare, and childcare—remain acute pressures for both employers and employees.

At the same time, uncertainty at the federal and global levels continues to add strain.

DiPentima told summit attendees that “the question is not whether Connecticut can compete—it can.”

“The question is whether we will act with the urgency needed to ensure that growth is broad-based, sustainable, and inclusive,” he said.

Speaking with DiPentima, Webster Bank president and CEO John Ciulla highlighted the importance of certainty for businesses.

“We care less about what the financial profile or landscape looks like,” he said. “We need to know what it is so that we can plan.

“We’ve been in a position where we’re dealing with uncertainty, and we’re having to be really nimble—and that does take its toll.”

Policy Priorities

As state lawmakers prepare for the General Assembly session, a group of legislators told summit attendees they are focused on listening to the business community.

“It’s really important for us as legislators to collaborate, listen to the business community, and have a clear idea of how we’re going to move forward,” said state Sen. Christine Cohen (D‑Guilford).

Cohen joined a bipartisan panel that included Sen. Paul Cicarella (R‑North Haven), Rep. Jack Fazzino (D‑Berlin), and Rep. Tami Zawistowski (R‑East Granby).

All four panelists are either small business owners or work closely with small businesses.

The lawmakers discussed policy priorities ranging from healthcare, childcare, and energy costs to initiatives aimed at expanding the state’s workforce.

“We can’t rest on our laurels,” Fazzino said.

“We’re in a much better place economically than we were 10 years ago, but there’s still so much more to do.”

“The number one topic for everyone—whether you’re a small business, large business, or individual living here in Connecticut—is affordability,” note CBIA vice president of public policy Chris Davis, who moderated the panel.

Rising Costs

Cohen pointed to healthcare costs as a growing burden for small employers.

“I used to be able to afford to provide healthcare benefits to my employees,” she said.

“That’s become unsustainable, as it has for many small businesses.”

Lamont has said he supports a CBIA proposal to allow the creation of association health plans to expand access to affordable healthcare.

Zawistowski noted that insurance challenges extend beyond healthcare.

“I’ve talked to a lot of businesses,” she said. “They’re dealing not just with health insurance, but motor vehicle insurance and insurance for their premises.

“The Insurance Committee has a fair amount of work to do this year.”

Providing Relief

Childcare affordability also surfaced repeatedly as a workforce issue, particularly for young families.

“In an ideal world, you should be spending about 7% of your income on childcare,” Fazzino said.

“That’s not the reality for a lot of young professional parents right now.”

“I feel like I’ve got to do something short‑term for folks who are getting crushed.”

Gov. Ned Lamont

Energy costs are another major concern, with Connecticut ranking among the most expensive states for electricity and natural gas.

Lamont floated the idea of a one‑time energy rebate to provide near‑term relief.

“I feel like I’ve got to do something short‑term for folks who are getting crushed,” he said.

Cohen added that policymakers are discussing longer‑term solutions, including expanding nuclear or natural gas capacity to help stabilize prices.

Workforce Development

As lawmakers address rising costs, they said they are also focused on workforce development and strengthening Connecticut’s career pipeline.

Cicarella emphasized the importance of exposing students earlier to careers in manufacturing and the trades.

“We don’t do a good enough job of educating kids early on.”

Sen. Paul Cicarella

“These are real careers,” he said. “We don’t do a good enough job of educating kids early on.”

Zawistowski echoed that message, noting the need to connect students with modern manufacturers to show they are “great places to work.”

As businesses navigate rising costs and regulatory complexity, lawmakers also highlighted opportunities to improve efficiency.

Licensing Fees

One proposal drawing attention is the elimination of a range of occupational licensing fees.

Lamont said he plans to propose eliminating certain fees when the session begins Feb. 4.

“They’re a burden on the trades and nurses, and we’re trying to recruit these people,” he said.

We can't control every external factor, but we can ensure this is the best place to do business and live. The question isn't whether we can compete—we can. The question is whether policymakers can act with the urgency needed to drive job, economic growth. https://t.co/hrFPVYPhqQ

— Chris DiPentima (@ChrisDipentima) January 30, 2026

“We need licensing and accountability from a consumer protection perspective,” Cicarella added. “But it doesn’t have to be that expensive.”

With the 2026 General Assembly set to convene Feb. 4, both business leaders and lawmakers agreed, the path forward will require collaboration, focus, and urgency.

“We cannot control every external factor,” DiPentima said.

“But we can create conditions that make Connecticut the best possible place to do business and live despite all the uncertainty around us.”

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The Economic Summit + Outlook 2026 was made possible through the generous support of Webster Bank, with additional support from Bradley International Airport, PwC, Cigna, DoorDash, Eversource Energy, and Kamco.